Stack Infrastructure, a data center company, announced last week it qualified for a new tax program in Illinois. This program exempts qualifying data centers and their occupants from state and local sales tax on data center equipment purchases. STACK says it’s the first data center company certified under the new legislation. The company expects to offer exemptions by year-end, enabling clients at its Chicago data center campus to purchase servers, network gear, and other data center equipment at reduced costs.
To qualify for the new program, data center operators and their occupants must invest a total of at least $250 million in their facilities and meet green building standards such as LEED or Energy Star. They must also employ 20 or more full-time employees over five years at wages at least 25 percent higher than the applicable median average county wage. Illinois’ tax incentive is expected to bolster the data center industry in the Chicago region — the nation’s third largest data center market — and serve as a powerful tool to increase competitiveness, attract new businesses, fuel new construction, and create well-paying jobs across the state.
“We are excited by STACK Infrastructure’s commitment to the state in terms of both substantial investment and job creation,” said Erin Guthrie, Acting Director of the Illinois Department of Commerce and Economic Opportunity. “The new data center program promises to propel Illinois to the forefront of the industry in cooperation with companies helping lay the foundation for long-term growth.”
December 10, 2019